OGIG Rallies as Global Internet Stocks Surge

Global internet stocks rose strongly last week after US inflation figures for October came in slightly lower than expected, pointing to the possibility that the Fed will be less hawkish next year.

After a tech sell-off just a few weeks ago on weaker mega-tech earnings, global internet stocks rebounded last week. The Alps O’Shares Global Internet Giants ETF (OGIG B-) It rose 13.28% last week as growth stocks picked up again with the US 10-year yield falling nearly 40 basis points, Alps wrote in Insight on November 14.

The rally continued this week. OGIG It rose about 5% in the first hour of trading on Tuesday. Over the past five days, the fund has increased by more than 17%, bringing its one-month delayed returns to more than 5% as of November 15.

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Although many sell-side strategists remain skeptical of the tech rally, US Treasury yields posted their biggest one-day drop since 2008 after inflation spiked, while the dollar has also weakened more since 2015 — both of which act as tailwinds for assets. the growth , Alps Wrote.

gains in OGIG The past week was widespread across sectors of the Internet.

In the cloud software segment, Internet software developer Cloudfare Inc. (Clear US, weighing 1.23% as of Nov. 11) was OGIG’s best performer last week, jumping nearly 38% as the high-growth, high-flying stock got a valuation boost from its longer-term cash flow profile benefiting from lower interest rates, Alps Wrote.

Five9 Inc. (FIVN 11), the provider of cloud call center software, returned 35.19% last week on the back of lower interest rates and after analysts defended resetting guidance expectations for the fourth quarter after selling off shares the week before, according to Alps.

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In the box’s online media segment, video game software company, Unity Software Inc. (U US, weighing 1.00% as of Nov. 11), up more than 31% last week with its acquisition of IronSource (IS, not in OGIG) was praised by investors for driving a significant increase in revenue in the third quarter and outperforming it, Alps Wrote.

OGIG’s online services segment saw food delivery company Delivery Hero SE (dirhams GR, Weight 1.35% as of Nov. 11) up 33.53% last week on better-than-expected Q3 results.

Almost every country is exposed within OGIG Global markets saw significant gains last week as global markets moved higher on anti-inflationary trends in the USA and China, which returned 13.99% and 7.54% last week respectively.

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Among the top performers among OGIG’s Chinese exposure last week was online recruiter Kanzhun Ltd (US BZ, 0.98% by weight as of November 11) and e-commerce company JD.COM Inc (9618 Hong Kong, 0.81% by weight as of Nov. 11), which returned 13.38% and 8.94% respectively, according to Alps. Major Chinese internet stocks rose last Friday on the back of potential easing of China’s zeroCorona virus disease policies sometime next year.

Other funds that offer exposure to Internet stocks include: Astronomy The next generation of the Internet ETF (ARKW c +) and the Fidelity Metaverse ETF (FMET ).

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